EUR/USD was hit hard by the ECB and then by the Fed and even dipped under 1.09. It then began a very gradual recovery, getting closer to the very round 1.10 level.
After “stalking†this level, the pair made a move to the upside, reaching 1.1016, but fell back down.
The disappointment from German retail sales depresses the pair, at least for now. These were flat instead of +0.4% expected and the previous month’s figure was revised down from -0.4% to -0.7%.
It’s a busy day for the old continent: Spanish GDP will be released soon and a quarterly growth rate of 0.9% is predicted.
The bigger event is the release of inflation numbers for the euro-zone. After German inflation came out above expectations, the euro-zone number is estimated to have improved from an outright deflation of -0.1% to a flat 0%. Core inflation carries expectations of +0.9% in October, just like in September.
The euro-zone unemployment rate is expected to remain unchanged at a not-so-positive 11%.
Above 1.10, we have 1.1070 and 1.1130 as the next resistance lines. Support awaits at 1.09 and 1.0810.
